Superstore staff in Alberta vote in favour of strike action

[Azure]

Originally Posted by Slava

I think there is a disconnect here in whether people should want to be paid more money. Of course that is fine, and I happen to support that. But to suggest that "the company can afford it, so they'll just take it out of their profits" is just pure fantasy. No one is doing that.

Look at stores like Community Natural Foods. They have paid a living wage for years, which more businesses could and should do. But the prices are notably higher. It's not hypocrisy at all to point out that higher wages are going to mean higher costs for consumers...it's reality.

You make good points, but I think people look at the overall worker satisfaction and higher wages that Costco has, and feel that if they can do it, Loblaws should be able to do it as well.

Of course, maybe the margins aren't as high on grocery items, and Costco sells a lot of other stuff where they can make more money.

[Azure]

Originally Posted by iggy_oi

Do you know what a strike is?

You’re essentially arguing that if everyone stops working there it won’t change a thing, but at the same time if people stop working there it’ll change thing for the better.

A strike is done with the intent of getting something.

If you honestly think they'll get one of the most greedy companies in Canada to make lasting changes on how they compensate their employees based on a strike, you are naive.

We are talking about the company that had no problem price fixing bread. And then lied that they did it until it was proven.

But either, I support the strike 100%. Good for them. But there is a cultural problem with how Loblaws runs their business, and I doubt it'll change.

[iggy_oi]

Originally Posted by Slava

First, I’m not suggesting that this will be a hardship for consumers. I’m pointing out that inflation and inflationary pressures are in the media a lot these days. We just saw a federal party base their campaign around the rising cost of living. I don’t think it’s a stretch to suggest that rising wages at a grocer would add to that concern.

I didn’t hear a lot of people complaining about higher prices at the start of the pandemic when they introduced their $2/hour “hero” pay. I also didn’t hear a lot of people raving about massive price drops once they eliminated the premium. Did you?

But if you’re right and Superstore is already one of the highest payers in the sector, why are they being hammered in this thread for not paying enough?

Highest paid doesn’t always mean you’re treated the best and for employees a higher hourly rate doesn’t do as much good if your employer is only willing to offer you minimal hours.

[Slava]

Originally Posted by Azure

You make good points, but I think people look at the overall worker satisfaction and higher wages that Costco has, and feel that if they can do it, Loblaws should be able to do it as well.

Of course, maybe the margins aren't as high on grocery items, and Costco sells a lot of other stuff where they can make more money.

Costco also has their membership income. I’m not sure that’s a fair comparison that keeps getting thrown out.

Originally Posted by iggy_oi

I didn’t hear a lot of people complaining about higher prices at the start of the pandemic when they introduced their $2/hour “hero” pay. I also didn’t hear a lot of people raving about massive price drops once they eliminated the premium. Did you?



Highest paid doesn’t always mean you’re treated the best and for employees a higher hourly rate doesn’t do as much good if your employer is only willing to offer you minimal hours.

You do know that those were temporary measures, right? Like the company literally increased that pay on a temporary basis for extraordinary circumstances, and it surely impacted their bottom line.

And sure, they didn’t increase prices, so the union guy here thinks they should just do that forever and it becomes the new normal. But this isn’t about money…

[iggy_oi]

Originally Posted by Azure

A strike is done with the intent of getting something.

If you honestly think they'll get one of the most greedy companies in Canada to make lasting changes on how they compensate their employees based on a strike, you are naive.

They’ve already done so in the past. I don’t think it is naive to believe this can happen again.

We are talking about the company that had no problem price fixing bread. And then lied that they did it until it was proven.

But either, I support the strike 100%. Good for them. But there is a cultural problem with how Loblaws runs their business, and I doubt it'll change.

Well good for you. Though I find it a little odd that you would support a strike you think will result in no gains for the employees.

[iggy_oi]

Originally Posted by Slava

Costco also has their membership income. I’m not sure that’s a fair comparison that keeps getting thrown out.

There are other factors that could be argued give Loblaws an edge over Costco revenue wise.

You do know that those were temporary measures, right? Like the company literally increased that pay on a temporary basis for extraordinary circumstances, and it surely impacted their bottom line.

The circumstances hadn’t really changed when they cancelled it after the first of four waves, and counting.

And sure, they didn’t increase prices, so the union guy here thinks they should just do that forever and it becomes the new normal. But this isn’t about money…

It’s not up to me to say what those workers should or shouldn’t ask for but my opinion is that if the company can clearly afford to pay their employees an extra $2 while still managing to perform exceptionally well then it’s probably in everyone’s best interest that they do so.

Not sure why my views on Unions are being brought into this, unless you think your opinions on this matter should be dismissed because you work with investments and keeping wages low generally doesn’t hurt stock prices.

[Salt Water Cowboy #10]

When will the strike start? I haven’t seen it posted in here and I don’t want to search around for it.

[iggy_oi]

Originally Posted by Salt Water Cowboy #10

When will the strike start? I haven’t seen it posted in here and I don’t want to search around for it.

They haven’t served strike notice yet, if/when they do it’s 72 hours after that.

[VladtheImpaler]

Originally Posted by Azure

You make good points, but I think people look at the overall worker satisfaction and higher wages that Costco has, and feel that if they can do it, Loblaws should be able to do it as well.

Of course, maybe the margins aren't as high on grocery items, and Costco sells a lot of other stuff where they can make more money.

Costco doesn't make anything on products. The profit comes from the membership sales. And probably liquor, since they are the largest distributor of alcohol in NA.

[Jason14h]

Originally Posted by VladtheImpaler

Costco doesn't make anything on products. The profit comes from the membership sales. And probably liquor, since they are the largest distributor of alcohol in NA.

And Tire sales and swaps

[Snuffleupagus]

-Grocery, Retail, Truck Drivers and Warehouse staff are mostly underpaid.(sometimes grossly)

-Office staff, Supervisors, Nurses and Commercial Pilots about right.

-Lawyers, Doctors, Execs and CEO's mostly overpaid.(sometimes criminally)

And I'm not even a "lefty"

[Knightslayer]

Originally Posted by VladtheImpaler

Costco doesn't make anything on products. The profit comes from the membership sales. And probably liquor, since they are the largest distributor of alcohol in NA.

Don't kid yourself they make a lot on their products. It isn't their big money maker of course but why is there a myth they don't make money on their products. Their products are the same price or more expensive than other stores that don't have a membership fee.

It is a small portion of their profit but they still make a profit on things they sell.

[calgarywinning]

Didn't Loblaws have Trudeau replace all their fridges for them as well?

[iggy_oi]

Originally Posted by VladtheImpaler

Costco doesn't make anything on products. The profit comes from the membership sales. And probably liquor, since they are the largest distributor of alcohol in NA.

https://www.investopedia.com/how-cos...-money-5094774

Costco offers merchandise in categories, including:

Food and Sundries
Hardlines (such as major appliances, electronics, and hardware)
Fresh Foods
Softlines such as apparel and small appliances
Ancillary (which includes gasoline and pharmacy products)2

The company also generates a small percentage of revenue through membership fees.

Costco also provides information about revenue generated through membership fees. Membership fees typically make up a much smaller portion of total revenue. For Q2 FY 2021, for example, the company reported $881 million in membership fees, or roughly 2% of total revenue

[VladtheImpaler]

Originally Posted by iggy_oi

https://www.investopedia.com/how-cos...-money-5094774

Right. Revenue is not profit, but that's not covered at union school.

[bizaro86]

Originally Posted by Knightslayer

Don't kid yourself they make a lot on their products. It isn't their big money maker of course but why is there a myth they don't make money on their products. Their products are the same price or more expensive than other stores that don't have a membership fee.

It is a small portion of their profit but they still make a profit on things they sell.

It isn't necessary to discuss this as a hypothetical, they publish financials. For the last pre-pandemic year (2019) they did 149.3 billion in revenue. They sold 3.352 billion in revenue from memberships, and had net income of 3.659 billion.

So the vast majority of their income came from membership sales. After removing membership revenues net income was 307 million on sales of 149.3 billion. That is 0.2% net margins.

So while you're right they do make money on their goods, it isn't much as a percentage of sales.

Edited to add: their sales were up a bunch in fiscal 2020 due to the pandemic, so their net income margins after deducting membership revenues were a bit higher. 0.28% of revenue. Less than 1% of revenue seems pretty skinny to me.

[iggy_oi]

Originally Posted by VladtheImpaler

Right. Revenue is not profit, but that's not covered at union school.

It’s funny because I considered pointing that out but then I thought to myself let’s see if Vlad takes the bait and won’t bother to read the link. You didn’t disappoint.

Though significantly smaller than its U.S. operations, Costco still does considerable business through its Canadian Operations segment. This segment reported about $6.0 billion in total revenue for Q2 FY 2021, representing a 14.7% YOY increase. Canadian Operations also posted operating income for the quarter of $236 million, a 16.8% YOY increase. For this quarter, Canadian Operations represented 13% of Costco's total revenue and 18% of the company's operating income.

Now let’s all go back to pretending as if Costco only makes a 2% profit in Canada as you’ve implied while ignoring the fact that the link I provided clearly shows that to be false. While roughly 3.5-4 percent might not sound like you’re that far off, the gap of over $100M is pretty big at $60/membership.

Why would anyone bother going to Union school when it’s far more efficient to just wait and see what business school grads have to say and argue the opposite knowing they’re usually full of it?

[Slava]

Originally Posted by iggy_oi

It’s funny because I considered pointing that out but then I thought to myself let’s see if Vlad takes the bait and won’t bother to read the link. You didn’t disappoint.



Now let’s all go back to pretending as if Costco only makes a 2% profit in Canada as you’ve implied while ignoring the fact that the link I provided clearly shows that to be false. While roughly 3.5-4 percent might not sound like you’re that far off, the gap of over $100M is pretty big at $60/membership.

Why would anyone bother going to Union school when it’s far more efficient to just wait and see what business school grads have to say and argue the opposite knowing they’re usually full of it?

Are you just plain skipping the post between with the figures from the corporation’s financials? It’s spelled right out for you there. But regardless, who cares about Costco and their margins. You already said that Superstore pays its employees among the highest in the business and this is about things other than money.

[GGG]

Originally Posted by Snuffleupagus

-Grocery, Retail, Truck Drivers and Warehouse staff are mostly underpaid.(sometimes grossly)

-Office staff, Supervisors, Nurses and Commercial Pilots about right.

-Lawyers, Doctors, Execs and CEO's mostly overpaid.(sometimes criminally)

And I'm not even a "lefty"

How do you assess someone’s value versus their wage?

[Pizza]

Originally Posted by iggy_oi

They haven’t served strike notice yet, if/when they do it’s 72 hours after that.

you can bet the strike will be called days before Canadian Thanksgiving.

It's no coincidence that their vote comes before the 2nd highest shopping period of the year, putting more pressure on Loblaw's execs